East Peoria, Morton get authority to raise hotel tax rates

East Peoria and Morton won the go-ahead they need from state government Tuesday to boost their local hotel tax rates, and elected officials from both communities soon could vote on whether to do that.

Adriana Colindres

East Peoria and Morton won the go-ahead they need from state government Tuesday to boost their local hotel tax rates, and elected officials from both communities soon could vote on whether to do that.

The Illinois House of Representatives voted 74-23 to override Gov. Rod Blagojevich’s veto of legislation permitting the two Tazewell County communities to enact higher hotel tax rates.

The Senate on Monday also successfully overrode the veto, so the House action means the measure will become law without the governor’s backing.

When Blagojevich vetoed Senate Bill 2676 in August, he said he didn’t want to increase taxes.

But supporters of the bill have insisted it is not a tax hike. Instead, they say, it lets locally elected officials decide if they want a higher hotel tax rate.

The Peoria Area Convention and Visitors Bureau has been working with officials in the region to ensure a uniform tax rate — 6 percent — to generate extra money for tourism marketing.

Morton Mayor Norm Durflinger said the Village Board could vote as soon as October on increasing its hotel tax rate from the present 5 percent to 6 percent.

“The only reason why we wanted it is we consider this a rainmaker for tourism in the area,” Durflinger said after the House’s vote to override. “The whole concept is, let’s bring more people into the Peoria area. We want them to enjoy themselves but we also want them to spend a little money in our communities.”

East Peoria Mayor Dave Mingus said the City Council likely would seek to raise its 5 percent hotel tax, which generates roughly $625,000 to $630,000 a year, to 6 percent. But he couldn’t pinpoint when that might happen.

“I believe that there will definitely be an agenda item in the future,” Mingus said.

When the House previously considered the hotel tax legislation in May, the vote was 64-48. Overriding a veto from the governor, however, requires 71 votes. Peoria-area lawmakers lobbied their colleagues to reach that threshold.

“The central Illinois lawmakers really came through for us,” said Brent Lonteen, who heads the PACVB.

Twenty lawmakers, both Democrats and Republicans, who voted against the plan in May changed their minds and supported it on Tuesday.

One was Rep. Bill Black, R-Danville.

“We’re not raising the tax,” he said, adding that the legislation merely gives that option to East Peoria and Morton. “To me, that’s just local government. That’s where the decision should be made.”

Adriana Colindres can be reached at (217) 782-6292 or adriana.colindres@sj-r.com. Frank Radosevich II contributed to this story.